Bitcoin, volatile?No, it’s actually the Dow Jones Now

Over the weekend, Bitcoin remains in a limited trading range between $18,985 and $19,675.Alpha cryptocurrency lost $2 million handle. BTC is currently trading at $19,499, up 1% from last week, according to Coingecko’s Sunday data.

But it’s not Bitcoin’s narrow trading scope that’s raving Wall Street. Bitcoin is more volatile than the Dow Jones Industrial Average.

In recent months, BTC has traded in tandem with equities. Both asset classes are susceptible to general macroeconomic impacts such as sharp inflation and rising interest rates.

Nevertheless, as the world’s largest crypto asset shows signs of independence from equities, Bitcoin’s volatility appears to have fallen relative to traditional equities.

The Federal Reserve finally did it, they broke the market:

The Dow Jones (the 30 largest industrial stocks on the planet) is officially more volatile than Bitcoin. pic.twitter.com/BfveiMYZy2

— Zero hedge (@zerohedge) October 7, 2022

Bitcoin loses volatility to Dow Jones

As of October 7, the Dow Jones Indexes were more volatile than BTC, according to data provided by ZeroHedge.

The Dow Jones Industrial Average fell 630.15 points (2.1%) to reach 29,296.78. The S&P 500 Index fell 2.8% to 3,639.65. Nasdaq Composite fell 3.7% to 10,652.40, less than 1% above its year-to-date low.

DJIA is a stock market index that tracks the 30 largest publicly traded companies on the New York Stock Exchange and NASDAQ. The Dow Jones, also known as the Dow 30, is named after Charles His Dow, who devised the index with Edward Jones in 1896.

Image: Vox

Crypto gets more stable as it matures

As Bitcoin’s popularity has grown, its volatility has decreased. Institutional capital inflows have also contributed to the relative stability of the top cryptocurrencies compared to their early popularity.

Equity portfolios are wiped out and commodity prices plummet as a result of a stronger US dollar. However, Bitcoin has been one of the most stable assets over the past few weeks. His 6.5% rise in the cryptocurrency caught the attention of both bulls and bears.

Image: BTC VS Dow Jones Volatility | Zerohedge

Bitcoin’s recent achievements demonstrate the progressive characteristics of the crypto-asset, which has been designated as one of the most volatile assets. Interestingly, bitcoin proponents argue that once bitcoin reaches maturity, it is defined by greater acceptability, so the asset becomes less volatile and trades like any other asset. doing.

Meanwhile, Bitcoin’s volatility has declined due to the strength of the US dollar, and global fiat currencies have lost value against the US dollar. The combination of a stronger dollar and lower commodity prices could have a negative impact on equity portfolios.

BTCUSD trading pair at $19,510 | Featured image from Finance Magnates, Chart: TradingView.com